Tesla is sliding after its sales in China crashed 70% in October amid Trump’s trade war

  • Tesla sales in China crashed 70% in October amid the ongoing trade war.
  • Last week, the electric-car maker cut prices on some models in China to help offset the impact of President Donald Trump’s tariffs.
  • Tesla shares slid as much as 2.27% early Tuesday, trading near $US338 apiece.
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Tesla slid as much as 2.27% early Tuesday, trading near $US338, after a report said the company’s vehicle sales in China slumped in October amid the trade war between the US and China.

The electric-car maker sold just 211 vehicles in the world’s largest auto market in October, down 70% from a year ago, according to Reuters, citing an official from China Passenger Car Association. The source attributed Tesla’s underperforming sales to the ongoing US-China trade war.

On Thursday, Tesla said it was slashing prices on its Model X and Model S vehicles in China by 12% to 26% to help offset some of the impacts from President Donald Trump’s trade war.

“We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China,” Tesla said in a statement sent to Reuters.

Earlier this year, the Trump administration imposed tariffs on $US250 billion worth of Chinese goods, prompting Beijing to retaliate. In July, Beijing raised tariffs on imports of US autos to 40% amid a worsening trade standoff with the US.

Tesla in October secured a site in Shanghai, China, for its first overseas Gigafactory in order to help avoid the steep tariffs.

Tesla was up 8% this year through Monday.

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